Cattle Futures Rise as Other Markets Falter

Cattle futures ended the week on a high note, despite struggles in other agricultural markets. August live cattle futures rose $0.525 to $231.75, near mid-range, and hit a two-week high for the week up $4.50.

The cattle market saw more short covering and perceived bargain hunting from speculators, suggesting that price bottoms may be in place. In contrast, corn, soybean, and wheat futures all fell, with corn hitting a two-week low and the soybean complex experiencing its worst week since early July.

Corn prices were particularly weak due to wetter weather forecasts for the western Corn Belt, which is bearish for prices. The corn futures market bulls stumbled badly this week, including today's technically bearish weekly low close, suggesting that the summertime rally has run its course.